Retirement · Calculator

Roth vs Traditional.
Which wrapper wins?

The Roth vs Traditional decision depends on one question: will your tax rate be higher now or in retirement? This calculator shows the math for your specific numbers, including what happens when you add a Bitcoin allocation inside the Roth.

The question it answersShould I use a Roth or Traditional account, and does adding bitcoin change the answer?

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Looking for something close? Roth vs Traditional Breakeven: one contribution, and the retirement tax rate at which both choices tie.

20%
Roth (after-tax)
$0
100% tax-free withdrawals
Traditional (pre-tax)
$0
Tax owed: $0
Roth + Bitcoin
$0
100% tax-free withdrawals

The key insight: if you expect to be in a higher bracket in retirement than today, Roth wins. Bitcoin inside a Roth amplifies this advantage, high-growth assets benefit most from tax-free compounding because the tax savings grow with the balance.

What this tool assumes
  • Current marginal tax rate applies to the Roth up-front cost.
  • Retirement marginal rate applies to the Traditional at withdrawal.
  • No required minimum distributions modeled.
  • Bitcoin CAGRCompound Annual Growth Rate (CAGR)The steady yearly growth rate that would take an investment from its starting value to its ending value, with gains compounding. Example: $1,000 growing to $2,000 over 10 years is a CAGR of about 7.2%. It hides the ups and downs along the way, which matters for a volatile asset like Bitcoin. scenarios are hypothetical; past performance does not predict future returns.

Projection, not a promise. The result follows the assumptions you enter. Real results will differ, sometimes by a lot.

New to this topic?

See the glossary for plain-English definitions of every term used here.

Not tax advice. Consult a CPA for your specific situation.

HOW THIS IS CALCULATED

This tool runs entirely in your browser: no data is sent to any server. The assumptions and default values behind the result are listed under “What this tool assumes” on this page. Verify the methodology or inspect the source code in your browser's dev tools.

Where to go from here

Read next

Roth vs Traditional

The single biggest legal advantage in U.S. personal finance.

Explore further
  • Spot Bitcoin ETFsSpot Bitcoin ETFs (IBIT, FBTC) vs holding your own keys: fees, counterparty risk, tax treatment, and why an ETF is a stepping stone, not the destination.
  • Backdoor Roth How-ToIf your income exceeds the Roth IRA limit, you can still contribute via the backdoor Roth.
  • Roth vs Traditional BreakevenCompares after-tax Roth and Traditional account values and finds the retirement tax rate where both paths break even.
  • Roth Conversion CalculatorSizes a Roth conversion to fill your current tax bracket without spilling into the next one, using projected 2026 brackets.

Sources

Figures, rates and rules change: check each source’s date before acting on it.

  1. IRS, "Roth vs Traditional IRAIndividual Retirement Account (IRA)A retirement account with tax advantages and eligibility rules. Traditional IRA contributions may be deductible; taxable withdrawals generally enter income. Roth contributions use after-tax money, and qualified Roth withdrawals are tax-free.Full definition comparison" - irs.gov
  2. 2026 IRA contribution limits: $7,500 (under 50), $8,600 (50+) - irs.gov

Calculators are educational estimates, not financial advice. Disclosures · How pages are reviewed